Size and performance of banking firms
Article Abstract:
An analysis describing theory on the evolution of banking firms is presented. An earlier research considered a bank's economic functions when agents possess asymmetric information. Another study focused on the incentive effects generated by deposit insurance. Both models forecast the relationship between firm size and performance. Analysis shows that the theories lack substantial bases for economic prediction.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 1993
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Does bank lending affect output? Evidence from the U.S states
Article Abstract:
A panel of state-level data is used to test whether changes in bank loan supply affect output. The studies have found that shocks to money demand have large and statistically significant effects on the supply of bank loans, but loans have insignificant effects on output.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 2004
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Market discipline and deposit insurance
Article Abstract:
Explicit deposit insurance reduces required deposit interest rate, while it lowers market discipline on bank risk taking. A newly constructed data set of deposit insurance design examines how different design features affect deposit interest rates and market discipline.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 2004
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